According to the US Energy Information Administration (EIA), developers and power plant owners are planning to increase the utility-scale electric-generating capacity by 62.8 gigawatts (GW) in 2024, as reported by the latest Preliminary Monthly Electric Generator Inventory.

This surge represents a remarkable 55% increase compared to the 40.4 GW added in 2023, marking the most substantial expansion since 2003 and signaling sustained industry growth. Solar energy is anticipated to lead the charge, comprising the largest share of new capacity in 2024 at 58%, closely followed by battery storage, accounting for 23%.

Data source: US Energy Information Administration, Preliminary Monthly Electric Generator Inventory, December 2023

According to EIA, solar is expected to witness a record addition of utility-scale installations in 2024, with a projected 36.4 GW scheduled to be added to the grid. This surge would nearly double last year's 18.4 GW increase, itself a record for annual utility-scale solar installations in the United States. As supply chain challenges and trade restrictions ease, solar remains ahead of other generating resources in terms of capacity additions.

More than half of the new utility-scale solar capacity is planned for three states: Texas (35%), California (10%), and Florida (6%). Additionally, the Gemini solar facility in Nevada is slated to begin operating in 2024. With a planned photovoltaic capacity of 690 MW and battery storage of 380 MW, it is expected to become the largest solar project in the United States upon full operation.

In terms of battery storage, the EIA anticipates a record-setting year for annual capacity additions in 2024. Developers are planning to nearly double the US battery storage capacity, with 14.3 GW of new additions scheduled, up from the existing 15.5 GW this year. In 2023, the U.S. grid saw a 70% annual increase with the addition of 6.4 GW of new battery storage capacity.

Texas and California are expected to account for 82% of the new U.S. battery storage capacity, with the Menifee Power Bank (460.0 MW) in Riverside, California, scheduled to come online in 2024. With the rise of solar and wind capacity, the demand for battery storage continues to rise. The Inflation Reduction Act (IRA) has further accelerated energy storage development by introducing investment tax credits (ITCs) for standalone storage. Prior to the IRA, batteries only qualified for federal tax credits if they were co-located with solar.

Regarding wind capacity, operators are reporting an additional 8.2 GW scheduled to come online in 2024. This follows record additions of over 14.0 GW in both 2020 and 2021, with wind capacity additions slowing in the past two years.

Two large offshore wind plants, the 800-MW Vineyard Wind 1 off the coast of Massachusetts and the 130-MW South Fork Wind off the coast of New York, are scheduled to come online this year. South Fork Wind, originally expected to begin commercial operation last year, is now scheduled to come online in March 2024.

Data source: US Energy Information Administration, Preliminary Monthly Electric Generator Inventory, December 2023

In terms of natural gas, EIA says developers are reporting 2.5 GW in planned capacity additions for 2024, marking the lowest new natural gas capacity in 25 years. Notably, 79% of the natural gas capacity added this year is expected to come from simple-cycle, natural gas turbine (SCGT) plants. This marks the first time since 2001 that combined-cycle capacity is not the predominant natural gas-fired technology. SCGT power plants provide effective grid support due to their relatively quick start-up, ramp-up, and ramp-down capabilities.

Lastly, the start-up of the fourth reactor (1.1 GW) at Georgia's Vogtle nuclear power plant, originally scheduled for last year, has been rescheduled to March 2024. Vogtle Unit 3 began commercial operation at the end of July last year.